KUALA LUMPUR, October 19 – In a bid to foster a healthier work-life balance, the Malaysian government will introduce tax deductions for companies implementing Flexible Working Arrangements (FWA). Prime Minister Dato’ Seri Anwar Ibrahim announced this initiative during the recent budget presentation, stating that the updated framework will run from January 1, 2025, to December 31, 2027.
The government aims to support workers in cultivating a better balance between their professional and personal lives by offering a 50% tax deduction on expenses related to capacity development and software acquisition for employers adopting FWA, such as remote work. Additionally, a similar 50% tax deduction will be proposed for employers who provide paid additional caregiving leave for up to 12 months to employees caring for children or sick family members.
This measure is designed to alleviate the challenges faced by employees juggling work and caregiving responsibilities. Talent Corporation Malaysia has indicated that the expenses related to FWA implementation will be capped at RM500,000 as a one-off payment, and the eligibility will be verified upon receiving applications. This initiative underscores the government’s commitment to enhancing workplace flexibility and supporting the well-being of Malaysian workers.
